The Fed Signals Interest Rate Cuts, IDX Composite Closes Higher (Monday, August 25, 2025)

The IDX Composite (IHSG) strengthened by 0.87% to 7,926.91 at the close of trading on Monday (August 25, 2025).

Asian markets generally closed in positive territory this afternoon. The Nikkei index rose 0.41% to 42,807.82; the Hang Seng index climbed 1.94% to 25,829.91; the Shanghai index increased 1.51% to 3,883.56; and the Straits Times index rose 0.08% to 4,256.49.

"The IHSG and regional Asian exchanges strengthened, influenced by market players' response to signals from the Fed that it will cut its benchmark interest rate," said the research team at Pilarmas Investindo Sekuritas, as reported by Antara on Monday (August 25, 2025).

Previously, at the end of last week (August 23, 2025), Fed Chair Jerome Powell said he would consider lowering the interest rate in September 2025.

Based on the IDX-IC Sectoral Index, 9 out of 11 stock sectors strengthened today. The property sector led with a gain of 3.65%, followed by the infrastructure and finance sectors, which rose 2.61% and 1.87%, respectively.

Meanwhile, two sectors weakened: the health sector and the consumer staples sector, which corrected by 0.40% and 0.23%, respectively.

According to RTI Business data, the frequency of domestic stock trading today reached 2.37 million transactions.

A total of 47.04 billion shares changed hands, with a total transaction value of Rp 19.46 trillion.

449 stocks closed higher today, 215 stocks weakened, and 143 stocks were stagnant.

Today's top gainers were BBKP, which soared 34.92%, followed by LPKR and BVIC, which rose 34.34% and 29.81%, respectively.

On the other hand, MFIN was the top loser after plunging 14.73%, followed by POLU and BMAS, which corrected by 11.03% and 10%, respectively.